ESI to invest $5 mn in 3 yrs

ESI Group, the Euro 49 million, French-based provider of digital simulation software and prototyping, has announced the opening of its software product development centre, in Bangalore on Tuesday. The company will invest $5 million over the next three years.

ESI's presence in India was evident after the software business of erstwhile EASi was acquired by the former for $5 million in September 2003.

EASi has been in India for nearly 10 years. The newly-opened centre in Bangalore will be involved in the development of software products for virtual simulation.

"The inauguration of ESI Software India is laying a solid foundation for the implementation of a realistic and open CAE simulation environment strengthening ESI Group's virtual engineering solutions," Dr Alain de Rouvray, chairman and CEO, ESI Group, said.

Rouvray added that the India centre will play a key role in developing the Open VTOS, a visual environment platform for ESI Group's 2G and 3G solutions.

In the last one year after acquiring EASi, the company has been selling its products to Indian companies like Tata Motors, GM and many foundries for casting purposes. Until then, it was a cost centre of the erstwhile EASi. It has sold products to the extent of nearly $400,000 in a year.

ESI India currently employs 50 people and plans to expand to be 90-strong within the next three years. The Indian subsidiary was set up in February 2004.

The company will be dedicated to market requirements collection, product definition, design, implementation, validation and shipping. The nature of work represents high-end of the value chain encompassing all aspects of the software product development. The ESI Group expects to register Euro 80 million in revenues during the current year.

With over 50 per cent of its revenues coming from automotive sector, its clients include companies like Audi, Alstom, Renault, Daewoo, Skoda, Daimler-Chrysler among others. Clients from the defence and aviation sector include NASA, Boeing, GE and US Navy among others.